The prices of big-yield MLP CEFs have been rising, but not as fast as their NAVs, thereby creating some interesting opportunities, such as those offered by ClearBridge (including tickers: EMO, CEM and CTR). We share the data (including yields, premium/discounts and leverage) for 60 CEFs in this report, including multi-sector bonds, real estate and US Equities.
Powerful Dividend Growth, Attractive Value: This Business is Worth Considering
With the markets down significantly this year, there are attractive babies being thrown out with the bathwater, and this report reviews one such opportunity. Specifically, we review a highly profitable, rapidly expanding, common sense software application company that pays a healthy growing dividend and has a large total addressable market opportunity to keep growing the business for years to come. If you have the psychological wherewithal—this one is worth considering.
25 Big Dividends Down Big: Is 3M Worth Considering?
Many investors are struggling psychologically with the overall market declines this year. And one way they cope is by taking comfort in owning stocks with big healthy dividend yields. In this report, we share data on 25 big-dividend stocks (that are down big), and then take a closer look at one in particular, the 3M Company, before finally concluding with our opinion on investing in the market and 3M in particular.
3.8% Yield Industrial REIT, Worth Considering
Aside from backward looking financial metrics (which are good for this particular REIT), forward guidance is also attractive, and so too is the industry outlook attractive. Further, the balance sheet is strong for this monthly-dividend payer, and the valuation is reasonable (especially after the recent indiscriminate market declines). The dividend is well covered, and the company is getting ahead of the industry-trend towards environmental, social and governance (“ESG”) considerations. In this report, we review the business and conclude with our opinion on who might want to invest.
Powerful Contrarian Growth: This Is No Meme Stock
There is little doubt that this business is growing rapidly with a massive total addressable market opportunity (i.e. it has a long runway for continued growth). However the company is not profitable, its shares continue to be diluted, and in a fairly short period of time the share price has gone from high-flying pandemic darling to now a poster child for stocks to avoid in a rising interest rate environment. In this report, we review a variety of big headwinds the business currently faces, we consider several critical attractive qualities, and then we conclude with our opinion on whether a contrarian investment currently makes sense.
3.3% Yield Specialty REIT: Despite Price Weakness, Fundamentals Growing Stronger
Despite ugly performance for REITs this year, select names remain attractive. For example, shares of the specialty REIT we review in this report are down, but the fundamentals continue to strengthen (and the long-term outlook is compelling). In this report, we review the REIT’s highly-attractive business strategy (which positions it well for growth and income), fundamental strength, valuation and risks, and then conclude with our opinion on investing.
Big-Dividend REITs are Down: These 2 Are Worth Considering
So far this year, REITs have been the worst performing sector of the market. And that has created some attractive opportunities for income-focused investors. In this report, we review year-to-date market performance (what has been working and what hasn’t), we then dive into big-dividend REIT performance, and finally we highlight two big-dividend REITs that we believe are particularly attractive and worth considering for investment.
SaaS Business: Powerful Growth, Compelling Price
Better. Faster. Smarter. The Software-as-a-Service (SaaS) company that we review in this article helps organizations digitize and unify their workflows. That may sound like a lot of hot air, but it’s not. This is a real deal profitable business that is growing rapidly, has an extremely high customer retention rate and a massive long-term total addressable market opportunity (so it can keep growing rapidly). The company does not pay a dividend, but the shares have gotten relatively inexpensive during the recent “tech wreck,” and 5 years from now many people will wish they bought shares. We are long this stock, and it currently presents a compelling buying opportunity.
Another Standout BDC: 7.1%+ Dividend Yield
If you are looking for a high-income opportunity that is attractive on a risk-versus-reward basis, the BDC we review in this article is worth considering. Not only does it offer regular, supplemental and special dividends, but it stands out versus its BDC peers in terms of strong financial metrics and strong deal flow trajectory going forward. It also has support from a larger parent organization, it has significant interest rate hedging (by virtue of its largely floating rate portfolio and debts) and the recent share price pullback makes for an increasingly attractive entry point. In this report, we review the details and conclude with our opinion on investing.
Attractive 8% Plus Yield BDC: Interest Rate Risk Baked In
This big-dividend hidden gem of a BDC may be popular in certain niche investment circles, but if you haven’t considered it previously, it is attractive and worth a closer look. It has many of the important qualities you’d like to see in a BDC (such as internal management, strong NII and a healthy dividend), plus the growing macroeconomic interest rate risks are already baked in—to a significant extent. In this report, we dive into the important details (ahead of its upcoming earnings release on January 31st), and then conclude with our opinion on investing.
This 9.3% Dividend Yield BDC is Worth Considering
The BDC we review in this report offers a stable 9.3% dividend yield. It also has a strong liquidity position and a relatively defensive portfolio (attractive given current macro uncertainty). In this report, we review the business, valuation, dividend safety and risks. We conclude with our opinion on who might want to invest.
Attractive 5.9% Yield CEF: Non-Traditional Income-Sector Exposure
If you like high income, but worry that your portfolio is too concentrated in traditional high-income sectors of the market, then this 5.9% yield (paid monthly) closed-end fund (“CEF”) is worth considering. This particular high-income CEF gives you important diversifying exposure to high-growth sectors (such as technology—a sector traditionally known for low yield), and it also trades at an attractive price. The price is attractive not only for the current discount to NAV, but because the underlying holdings are positioned for long-term gains—which will help the fund continue to pay you big steady income. It also employs a compelling covered-call strategy, it has a relatively low management fee (important!), and it has a rock-solid management company. In this report, we dive into the details.
Attractive Big-Dividend BDC: 7.9% Yield
In addition to the healthy 7.9% dividend yield, there are lots of things to like about this attractive business development company (“BDC”), including its low exposure to cyclical industries, its impressive portfolio quality, extensive industry relationships and its conservative balance sheet, to name just a few. In this report, we review the business model, portfolio characteristics, strategies and advantages, portfolio performance, dividend yield and safety, financial position, risks and finally conclude with our opinion on the stock’s risk-reward opportunity at the current valuation.
2022 Income Investment Opportunities: REITS, BDCs, CEFs and MLPs
A Compelling Big Bank: 3.4% Dividend Yield
Big Banks have changed a lot since the great financial crisis, but in a lot of ways they have remained the same. They’re now subject to dramatically more stringent regulatory rules (e.g., “too big to fail”), but their profitability (and long-term value) is still derived largely based on the same basic metrics (e.g., book value and net interest margins plus fees). And despite media stories obsessed with which tech companies have the biggest market caps, big banks continue to generate among the biggest piles of net income. In this report, we review one big bank in particular, describing why the shares are undervalued, the 3.4% dividend yield is attractive, the current market opportunity, a review of the risks, and concluding with our opinion on who might want to consider investing.
Industrial REIT: Attractive Dividend and Share Price Growth
Some investors might overlook the attractive industrial REIT we review in this report because its current dividend yield is only 1.6%. However, this dividend has been growing faster than peers (and we expect this to continue), and the yield is lower than peers because the share price has also been growing significantly faster than peers (and we expect this to continue too). In this report, we review the REIT’s attractive business model (including ongoing market opportunities), its financials, valuation and risks; we conclude with our strong opinion on investing.
The Sky is NOT Falling: Attractive Cloud-Based SaaS HR Company
The market has been especially ugly for high-growth stocks recently as the pandemic-trade pendulum now swings too far in the opposite direction. But that doesn’t mean all growth stocks are ugly. Quite the contrary. The attractive growth stock we review in this report offers a compelling high growth rate, a large total addressable market opportunity and an attractive valuation. Plus, it is supported by high recurring revenues, high customer retention and important research-and-development spending plus a strong sales team.
A Return to Office Play: 3.1% Yield REIT
The office REIT we review in this report is attractive for a variety of reasons, including its healthy dividend (it’s well covered and has been paid for 25 consecutive years), favorable geographic economics, ongoing growth trajectory, and the trend for companies to bring employees back to the office. This article reviews the health of the business, valuation, risks, dividend safety, and concludes with some final thoughts worth considering if you are a long-term income-focused investor.
**New Trades: 2 Sells, Quick Update**
A Dividend Growth Monster, On Sale
When investors think of “big dividends” their minds often gravitate to stocks with the highest dividend yields. However, “yield on cost” can be an extremely important metric for long-term income-focused investors because it can reveal massive dividend opportunities flying under the radar. For example, the attractive undervalued dividend stock we review in this article doesn’t have the biggest current yield, but if you look backwards and forwards, the yield on cost is truly massive and it has the trajectory to continue growing dramatically larger.